Characterization of scalar strategy mechanisms for efficient resource allocation: Demand side case

Karpowicz, M; Malinowski, K

  • Proceedings of 11th IFAC/IFORS/IMACS/IFIP Symposium on Large Scale Systems;
  • Tom: 40;
  • Numer: 9;
  • Strony: 327-332;
  • 2007;

We give a characterization of scalar strategy mechanisms that efficiently allocate a single divisible resource among strategically interdependent agents. We establish necessary and sufficient conditions for the mechanisms to yield allocations that maximize aggregate surplus of the system under constraints given by the market-clearing equation setting a price at which the total output supplied equals demand.